The European Commission recently dropped Tesla China’s import tariffs to 9%.
On July 5, the Commission imposed provisional tariffs on electric vehicle (EV) imports from China. The tariffs reached about 38% for some automakers manufacturing EVs in China. The Commission’s provisional tariffs also affected European automakers, like Tesla and Volkswagen, that build EVs in China.
Last month, European Union inspectors visited Tesla Giga Shanghai to determine individual duty rates for the company. According to the Commission, Tesla had requested a recalculation of its rate based on specific subsidies it received in China.
Based on the Commission’s initial rates, Tesla received 20.8% duties, lower than the maximum rate of 37.6%. Tesla received a lower rate because it cooperated with the Commission’s anti-subsidy probe on EV imports from China. Three Chinese automakers received individual rates, namely BYD at 17.4%, Geely at 19.9%, and SAIC, which received the maximum rate of 37.6%.
All the rates are imposed on top of the EU’s current 10% duty on car imports. Currently, the new China-EV import tariffs are provisional. The new tariffs will take full effect once the European Union’s member states approve them. All 27 members of the EU are expected to approve the new tariffs in November.
The European Commission’s anti-subsidy probe on China-made EV imports is still ongoing. On Tuesday, the Commission proposed a final duties rate of up to 36.3%, stating that it still believed EV production in China benefited from extensive subsidies.
BYD, Geely, and SAIC received updated duty rates as well. The Commission gave BYD a rate of 17%, Geely a 19.3% rate, and SAIC’s rate remained the highest at 37.6%.
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